By Anushree Mukherjee
(Reuters) – Gold costs look set for a record-breaking 2025 as heightened financial uncertainty and inflation concern underneath U.S. President Donald Trump’s second time period enhance demand, regardless of greenback energy and decreased Federal Reserve rate-cut expectations.
The ballot of 36 analysts and merchants returned a median forecast of $2,756 per troy ounce of gold in 2025, up from $2,674 predicted in a ballot three months in the past.
Spot gold costs hit a file excessive of $2,790.15 in late October and have been final at $2,742 on Monday. The common worth was $2,386 in 2024. [PREC/POLL]
Gold’s spectacular 27% worth rise in 2024, probably the most since 2010, made it top-of-the-line performing property of the yr, as traders favoured the metallic to hedge in opposition to international dangers and the U.S. Federal Reserve slashed rates of interest 3 times.
“Geopolitical dangers proceed to bubble in numerous scorching spots including to inflationary dangers and continued safe-haven demand for gold,” mentioned unbiased analyst Robin Bhar.
Gold retreated in November to December in a U.S. post-election selloff and a December assembly which noticed Fed policymakers trim estimates of charge cuts for 2025.
This month, the metallic discovered help from investor uncertainty over Trump’s U.S. import tariff threats and issues that potential commerce conflicts would stoke inflation.
“With file gold costs foreseen, some sectors within the bullion market will profit and others battle,” mentioned unbiased analyst Ross Norman. He added that jewelry demand was prone to be affected in price-sensitive Asian areas, whereas motivation for purchases by central banks and speculative curiosity in gold was prone to stay elevated. [GOL/AS]
SILVER TO REMAIN IN DEFICIT
Silver costs are anticipated to profit from sturdy industrial demand, particularly in inexperienced applied sciences and renewable power sectors, however lacklustre funding demand from exchange-traded funds (ETFs) and the potential impression of tariffs on international progress might have an effect on the metallic’s prospects, analysts mentioned.
“The silver market is about to stay undersupplied in 2025, however a deficit alone is not going to be adequate to drive upside worth danger for silver,” mentioned Normal Chartered analyst Suki Cooper, including that funding demand has struggled to maintain tempo in latest months.
The ballot forecasts silver costs to common $33.10 per ounce in 2025, decrease than $33.75 estimated within the earlier ballot, however larger than the present $30.20.
(Reporting by Anushree Mukherjee and Swati Verma in Bengaluru; further reporting by Polina Devitt in London; Modifying by Veronica Brown and Emelia Sithole-Matarise)
